Identify the correct sequence of Controlling process:

(A) Analysing deviations
(B) Measurement of actual performance
(C) Setting up standards
(D) Comparison of actual performance with standards

Choose the correct answer from the options given below:

The correct option is (C), (B), (D), (A).

Controlling is a core managerial function that ensures organizational activities conform to planned goals. The process of controlling consists of a systematic sequence of steps:

1. Setting up standards (C): The first step is to establish performance standards. These standards serve as the benchmarks or criteria against which actual performance will be evaluated. They can be quantitative (such as sales targets or production units) or qualitative (such as customer satisfaction levels).

2. Measurement of actual performance (B): Once the standards are established, the next step is to measure the actual performance of the activities. This measurement should be done in an objective and reliable manner, using units comparable to the set standards.

3. Comparison of actual performance with standards (D): In this step, the measured actual performance is compared against the pre-determined standards. This comparison helps in identifying whether there is a gap or match between what was planned and what has actually been achieved.

4. Analysing deviations (A): If there are differences (deviations) between actual performance and the standards, they must be analysed. Managers look into these deviations to determine their causes, distinguishing between minor acceptable variations and major critical deviations that require immediate attention (often using principles like Management by Exception).

Following these steps, corrective action is taken to bring the performance back on track.

Therefore, the logical and correct sequential order of the controlling process is setting standards, followed by measuring performance, comparing them, and finally analysing the deviations, which corresponds to the sequence (C), (B), (D), (A).